Professional Documents
Culture Documents
planning
120
94
20
pwc.com.au /consulting
6 | PwC
Integrated business
planning
Frequent surveys and studies, such as PwCs Finance Effectiveness
Benchmark study 2011, consistently highlight a desire for
organisations to improve their planning, budgeting and
forecasting capabilities.
Despite the significant amount of
time devoted to planning activities,
satisfaction with the quality of output
continues to remain low, despite
investment in leading practices and
technology enablement.
Our experience shows that many
planning, budgeting and forecasting
change programmes focus on a
particular function such as Finance,
Sales and Marketing or Operations.
Although benefit is realised for each
set of functional stakeholder, it does
not necessarily drive holistic, group
wide benefit as many organisations still
continue to struggle with aligning the
Challenges of poor
integration
We see poor integration manifest itself across twokey dimensions:
Process integration
Functional integration
Opportunity management
Organisations that are slow to model
cross functional impacts of decisions
miss opportunities to reallocate
or resources to take advantages
ofmarketopportunities.
A framework forsuccess
An Integrated Business
Process integration
Planning framework links
The first dimension to consider is
together interdependent
process integration, particularly those
process components of planning that translate strategy into execution.
Increasingly organisations are looking
across the Sales, Marketing,
Operations, Supply and Logistics at end-to-end processes within this cycle
rather than discrete strategic budgeting
and Finance functions. It creates and forecasting activities. This end-tocross functional alignment
end approach embeds the strategic aims
of the organisation into the planning,
and collaboration to support
reporting and forecasting processes.
effective and efficient decision
making driving improvements
Figure 1 illustrates the interconnected
nature of these processes within the
in customer satisfaction and
wider context of Enterprise Performance
businessperformance.
Management.
Functional integration
Secondly, functional integration which
promotes cross-collaboration between
product and service development,
procurement, production, logistics and
distribution, sales and marketing, and
customer service when creating business
plans. This provides a foundation for
organisations to consider the entire cost
of servicing customers and facilitates
a richer conversation regarding
resourceallocation.
Leading organisations are already
recognising the benefits of promoting
greater cross functional collaboration to
achieve broader business goals and are
actively encouraging these activities.
Ensuring aligned plans, budgets and
forecasts across functions provides
greater confidence in delivery and
more of a one company focus when
addressing performance gaps.
ar
to
Re
Fo
re
cast
Value
2. M
8 | PwC
u
as
re
Process integration
and mana
ge
ing
nn
t
en
m
3. R eco g nise to
Risk
pla
trategy to Plan
1. S
Operations
Strategic
planning
Benchmarketing
& forecasting
Operational &
investment planning
Supply &
logistics
Finance
Data
Technology
Significant
benefitsexist
By integrating processes, data andtechnology across functions
anorganisation can be more nimble and dynamic when making
resource allocation decisions.
This approach promotes the
consideration oforganisational
strategic objectives overthose
ofindividualfunctions.
It can also be the mechanism that
fosters a culture of collaboration and
trust across the organisation and drives
Budgeting and
forecasting
Budgeting and
forecasting
Integrated
Business
Planning
Commercial
planning
Supply chain
planing (S&OP)
Commercial
planning
Supply chain
planing (S&OP)
10 | PwC
Conclusions
Integrated Business Planning should
be considered a complementary
vehicle for driving incremental
business performance together
with additional improvements to
overall Finance Effectiveness such as
Management Information.
It isnt conceptual; its a real approach
proven through client engagements.
Although each business is unique, the
principles discussed in this paper are
relevant to all organisations and can
drive benefit.
It must be comprehensive across
process, organisation, data and
technology. Embedding Integrated
Business Planning can take time
as it relies on the buy in of senior
stakeholders and the ability to break
down behavioural, cultural and
functional barriers. It is an evolution
rather than a revolution.
Further reading
For more of our publications, please visit pwc.com.au/publications
whatwouldyouliketogrow.com.au
pwc.com.au/consulting
Metrics
that Matter
At a glance
In todays economy, strong
financial leadership is
more important than ever.
Finance functions will
need to work hard to
help businesses remain
competitive and well
positioned for the future.
PwCs Consulting
services
Contact us
For further details please contact:
Martin Green
Silvio Giorgio
Andrew Genever
Partner
+61 2 8266 0886
martin.green@au.pwc.com
Director
+61 3 8603 2030
silvio.s.giorgio@au.pwc.com
Senior Manager
+61 3 8603 5099
andrew.genever@au.pwc.com
pwc.com.au/consulting
2012 PricewaterhouseCoopers. All rights reserved.
PwC refers to the Australian member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity.
Please see www.pwc.com/structure for further details.
This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
Liability is limited by the Accountants Scheme under the Professional Standards Legislation.
PwC Australia helps organisations and individuals create the value theyre looking for. Were a member of the PwC network of firms in 158 countries with
close to 169,000 people. Were committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by
visiting us at www.pwc.com.au
WL262304